OREANDA-NEWS. OJSC "Magnit", Russia's largest food retailer (the "Company"; MICEX and LSE: MGNT) announces its unaudited 1Q 2014 financial results prepared in accordance with IFRS.

During 1Q 2014 the Company added (net) 163 stores (141 convenience stores, 4 hypermarkets, 4 "Magnit Family" stores and 14 cosmetics stores) and increased its selling space by 16.68% in comparison to 1Q 2013 from 2,629.88 thousand sq. m. to 3,068.61 thousand sq. m. The total store base as of March 31, 2013 reached 8,256 stores (7,341 convenience stores, 165 hypermarkets, 50 "Magnit Family" stores and 700 cosmetics stores).

Revenue in rubles increased by 24.95% YoY from 131,239.91 million RUR in 1Q 2013 to 163,990.13 million RUR in 1Q 2014. The top line growth was due to an increase in selling space as well as to a 7.49% increase in like-for-like sales (incl. VAT). Revenue growth in dollar terms amounted to 8.71%: from USD 4,315.09 million to USD 4,690.91 million2.

Gross margin grew from 26.72% in 1Q 2013 to 27.24% in 1Q 2014. Gross profit in rubles increased by 27.36% from 35,070.35 million RUR (USD 1,153.09 million) to 44,665.95 million RUR (USD 1,277.66 million).

EBITDA increased by 21.82% from 12,214.09 million RUR (USD 401.59 million) in 1Q 2013 to 14,879.50 million RUR (USD 425.63 million) in 1Q 2014. EBITDA margin in 1Q 2014 amounted to 9.07%.

1Q 2014 net income increased by 13.52% and amounted to 6,988.23 million RUR (USD 199.90 million) vs. 6,156.16 million RUR (USD 202.41 million) in 1Q 2013. Net income margin for 1Q 2014 was 4.26%.

Sergey Galitskiy, the Company's CEO, provided the following comments on the published results:

"In the middle of 1Q 2014 the Company started active price investments in the new regions of our geographical coverage: Moscow, Saint-Petersburg, Urals and Western Siberia. The Company's EBITDA margin in the first quarter is in line with our FY 2014 guidance".